Sparta Updates Delay in Filing Annual Financial Statements

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TORONTO, ON / ACCESSWIRE / March 21, 2024 / Sparta Group (TSXV:SAY) (the "Corporation", the "Company", "Sparta Group", "Sparta Capital", "SAY.V" or "Sparta") has announced that it is much closer to filing its annual financial statements. The new filing deadline is March 29, 2024. This is an update to its February 8, 2024, news release ("Default Announcement"), indicating an order from the Alberta Securities Commission ("ASC") for a Management Cease Trade Order (the "MCTO") under National Policy 12-203, Management Cease Trade Orders.

In the Default Announcement, Sparta reported that it had received the order for a MCTO from the ASC because the Company was unable to file its annual financial statements for the year ended September 30, 2023, including the related management's discussion and analysis (MD&A) and certifications from the CEO and CFO (the "Annual Filings") in time to meet the January 29, 2024, filing deadline. The delay in filing the Annual Filings is largely related to the unexpected and sudden passing of a former director and key officer, John O'Bireck, and the transition of day-to-day operations to a new management team. Mr. O'Bireck was responsible for all the operations of the Issuer, including liaising with the auditor. During this transitionary period, there have been unavoidable delays in responding to information requests from the auditor resulting in a delay in completion of the Annual Filings. The Company expects to file the Annual Filings on or before March 29, 2024.

While the MCTO restricts all trading in securities of the Company by the Chief Executive Officer and Chief Financial Officer of the Company until the MCTO is no longer in effect, regular trading by current and future investors continues as normal. The MCTO will be in effect until two full business days following the receipt of the principal regulator that all filings the issuer was required to make have been filed.

Under its new leadership, Sparta has identified three core businesses that it will prioritize going forward. These businesses are TruckSuite operations, ARHealth (which leverages AI and AR in healthcare), and ERS (focused on electronic recycling). The TruckSuite leadership team, based in the United States, is launching the Company's mobile app version 2.0 at the Mid-American Trucking Show in Louisville, scheduled to run March 21-23rd, 2024. The development of ARHealth applications for medical professionals is progressing well with the help of an Italy based technology partner. At the same time, ERS International is expanding its customer base and attracting leading organizations nationwide with its innovative technology, security, data destruction capabilities, and carbon credit program.